December 5, 2016      3 min read

Food manufacturing can be a tricky business – there are a lot of pieces to the puzzle with large amounts of raw ingredients coming in and needing to be made into the final product or products. It can be a headache for any manager or business owner, but with inventory management software, they are now able to automate their back of house a lot more, helping to streamline their business and create efficiencies across the board.

Let’s take a look at how inventory software can help create efficiencies for food manufacturers.

Waste be gone

Especially as they are dealing with raw ingredients, food manufacturers have to be particularly conscious of things like expiry dates and when items need to be used by. If they aren’t on top of it their wastage will be high and cash will be practically getting thrown in the bin. Inventory management software helps you easily track what ingredients need to be used and by when. Regardless of whether they’re utilizing the First In-First Out model or not, inventory software can determine which supplies are next to be used, helping to optimize the shelf life of the final product and reduce wastage as a result.

Order as needed

Inventory management software can easily help food manufacturers order more raw ingredients as and when they are needed. With automatic alerts and triggers, manufacturers will be able to know when they are nearly out of something and needing to be restocked. This allows orders to be placed with suppliers in time for delivery of more stock without holding up the entire supply chain and production. Even with products made from a small number of ingredients, if just one has run out then the business is losing sales and money.

Track your batch

As the food industry is controlled by a variety of rules and regulations, it is imperative that food manufacturers can track and trace every ingredient from the minute it arrives to the minute it leaves the building.

Inventory management software offers that level of visibility throughout the entire supply chain. This makes it extremely efficient if a disaster strikes and a product needs to be recalled for example. The manufacturer can define which products and specific batches are actually affected and not have to do a blanket recall over everything, helping to save on valuable time, associated costs and hopefully their brand reputation.

Drive down costs

Previously, small to medium sized food manufacturers were at a disadvantage, as they simply couldn’t afford both in time and money to utilize the Enterprise Resource Planning (ERP) systems that were available to large-scale manufacturers. This meant they were at the mercy of whatever makeshift systems they could find and implement, and half the time was left dealing with a lot of guesswork. Guesswork however, is not efficient at driving up profits.

Now though, these smaller manufacturers are able to implement inventory management software that is much more cost-efficient. The time it takes to implement the software is miniscule in comparison also, and it grows and scales with the business just as easily creating more efficiency down the track too.

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